Airlines getting scammed online, fighting back

by Tom Johansmeyer on

Airlines lose a boatload of cash – tens of millions of dollars a year – because of online fraud. Think about it: you pay for your pillow and to check a bag because some degenerate can’t bother to work for a living. The airlines are keeping their customers in mind (shockingly), though, and they’re fighting back. Better protection systems, increased staff and a higher priority for prevention are now on the agenda as carriers seek to protect their coffers.

The stakes are high, and airlines are exposed. A Deloitte UK survey conducted in 2009, with 50 U.S. and global airlines responding, report that 48 percent have seen increases in fraud year-over-year, with average losses of $2.4 million a year. Yet, it could be far, far worse. CyberSource and Airline Information conducted a poll and came to an estimated loss amount of $1.4 billion in 2008.

According to USA Today:

“The general feedback from everybody … is that they see it getting worse,” says Graham Pickett, partner in charge of aviation services for Deloitte UK, which conducted its survey for the International Association of Airline Internal Auditors. “The main driver has been … the Internet, and in particular credit card type bookings.”

Airlines have invested in protecting their profits over the past two years, especially the larger companies. Of course, they aren’t all that willing to talk about specific measures:

“Common sense on this issue limits a discussion of what we do to track, prevent and seek prosecution of such occurrences,” says Tim Smith, a spokesman for American Airlines. “We’re just not interested in providing a ‘how to’ lesson on the subject.”

The cyber-attack on airlines comes after online travel agencies, such as Orbitz, steeled their systems. For a while, they were the primary targets, with Orbitz, for example, getting spanked for millions of dollars a month by fraudsters.

The anti-fraud measures appear to be working. AirTran‘s team has reduced fraud losses to less than 1 percent of revenue, and Southwest says it has cut fraud by 73 percent.

How much does this matter? Think about all the small cuts you’ve had to deal with as a passenger. Every dollar matters to the airlines. Cutting fraud losses is just putting cash back in your pocket.

[photo by jepoirrier via Flickr]

Orbitz unveils new hotel comparison tools

by Melanie Nayer on

As the meta search market becomes more saturated, online travel agents and booking sites need to up their game plan in an effort to attract more discerning consumers looking for the nitty-gritty before booking.

Online travel agency Orbitz Worldwide Inc. announced plans to roll out a new “hotel search experience” on its site, complete with destination information, maps, tools and resources for travelers looking to book a hotel room with the OTA.

The side-by-side comparison feature allows users to compare the pros and cons of various hotels in a single view. But there are some other cool new features on this search engine including interactive maps that show both the hotel location and real-time room rate pricing, and a Google Street View image of the hotel and its surrounding neighborhood.You can also filter and sort results based on price, star-rating, consumer reviews and amenities. In most cases, hotel photos, videos and virtual tours from will be posted, but according to Orbitz, these photos and videos will only be from verified customers.

I tested out the site with a quick search for a New York City hotel. My parameters:

3- and 4-star properties in SoHo, Tribeca, or Greenwich Village that offer free WiFi. Orbitz returned four results: Soho Grand Hotel, Tribeca Grand Hotel, Hilton Garden Inn Tribeca and the Washington Square Hotel. Not bad options, and when I clicked on the Google map to the left of the page, I was treated to a map of NYC with the four hotels’ placements, as well as the price info.




My only disappointment: I couldn’t find the ‘real’ street view that allows you to see what’s happening near and around the hotel. I think this feature, in particular, will be extremely helpful for travelers who are booking hotels in a new destination, so Orbitz might want to give it more prominent placement.

Have you used the new hotel booking site on Orbitz? Let us know what you think!

Pricey tickets hold back leisure, but business travelers getting back on planes

by Tom Johansmeyer on

The past two years have been nothing short of severe for the travel business, especially the airlines. Fortunately, it looks like luck is turning. Barney Harford, President and CEO of Orbitz Worldwide, says that the airline sector appears to be on the mend, at least for business travel. Consumers, on the other hand, aren’t buying back in as aggressively, as high fares are battling with continued economic constraints for wallet share.

The average airfare for domestic travel is up 10 percent, according to Hartford, with international fares surging 17 percent. He notes to CNBC:

“We are seeing … a moderation in the increases in air tickets that we were seeing in perhaps May and June, where we saw some really stronger increases in air tickets,” Harford went on to say. “We’re hopeful that we’ll see an increase in capacity in the airline sector, which will drive some moderation in (the price of) airline tickets.”

Nonetheless, you can still find some bargains out there, according to Hartford. Look for the best values in Caribbean destinations.

[photo by emrank via Flickr]

AdventureFinder.com helps you discover your next adventure

by Kraig Becker on

Orbitz Worldwide launched a new online search tool, called AdventureFinder.com, earlier this week with the intention of making it easier than ever to help you discover new locations to explore, then customize and plan active, outdoor escape to those places. The site replaces GORPTravel.com, which was formerly used as an adventure travel resource as part of The Away Network.

Visitors to the website will find a variety of ways to search for their next trip, including by destination or activity. So for example, if you’re looking for a trip to Africa, you’ll be presented with a list of the many options for that continent, from some of the top adventure tour operators in the world. But if you want to see the best places to go mountain biking or white water rafting, you can do that too. The AdventureFinder front page also offers featured destinations and activities as suggestions as well, with Japan and Hiking/Backpacking getting those respective nods at the moment.

The unique “Who’s Going” search option allows you to find trips designed for specific types of travelers. Options include “singles”, “couples”, “family”, and so on. This option is great for helping you select a trip that will ensure you’ll be joining a group with which you have a common approach to travel, which can sometimes mean the difference between an enjoyable vacation and an awful one.

With so many great destinations to choose form, a tool like this is always welcome. I’ve found a couple of nice deals on places that I would certainly like to visit, and it seems that this will be a great resource for adventure travelers before they head out on their next escape.

Five predictions for the European travel market

by Tom Johansmeyer on

The end of the year is the time for all kinds of predictions for the next one. Usually, I treat such conjecture as the bullshit that it is, but when PhoCusWright puts out a list of what’ll happen for the travel market, I tend to take it a little much more seriously.

The worldwide recession is still squeezing the European travel market, but the online sector is likely to be the star next year, as it was in 2009. Consumers are turning to the web more and more to book their travel in Europe, and this will have a profound effect on how travel products and services are sold.

1. Up a third: PhoCusWright forecasts that the online segment of the travel market will hit 34 percent of the entire industry in Europe in 2010. Customers will turn to the internet to find better bargains, accelerating the shift from offline to online. At the end of 2008, online accounted for only 28% of European travel sales.

2. Priceline’s the one to beat: Priceline has lagged the three largest online travel agencies – Expedia, Orbitz and Travelocity – for years, but Priceline has seized some serious market share through the travel recession, due in large part to its acquisition of European company Booking.com. Priceline could take the #2 spot next year and will be well-positioned for the future.3. Metasearch arrival: Finally, there will be a solution to the fragmented online travel market! PhoCusWright forecasts the growth of sites that search across sites, which makes sense given that financial concerns are driving travel buyers to the web instead of traditional venues. There’s demand already, and economic conditions will feed the trend.

4. Big in Germany: Germany’s been gaining ground in the European travel market. In 2008, the country was responsible for only 17 percent of the space. Look for it to hit 20 percent by 2011, PhoCusWright says.

5. Look south for sunshine: Online penetration has topped 40 percent in the United Kingdom, and France and Germany are making progress. The easy wins are in the past. So, the travel business is looking toward the emerging travel markets of Europe: in the south and east.

There’s plenty on the agenda for the European travel market next year. Even in what will continue to be a tight economic environment, there’s plenty of room for growth. No doubt, the most important factor will be the recession, which will shape travel company behavior by driving buyers to seek better deals. The perception that online is the place to save will accelerate the push to electrons.